What is P/VP/V is the price-value ratio.
This percentage gives you a quick indication about how cheap or expensive a certain share is. Some people refer to P/V as 'mark-up'.
If you think about the normal price of a share being the exact % split of the total cost of entry.
For example, if the cost of a tournament is $200 and each 10% share is $20, then the P/V would be 100% (i.e. no mark-up)
If you start adjusting the share price, you'll notice the P/V value changes accordingly:
|Entry Cost||Share Size||Price||P/V|
Importantly, the further you go above 100%, the more expensive the share.
If the P/V is 120%, then that means for every $1 that the seller is getting staked for on an event, they are asking for $1.20 from the buyer. If the P/V is 150%, then for every $1 they are asking for $1.50.
Good players with an excellent history of profitable results can justify selling shares at a higher P/V. Buyers know they are willing to pay a premium on the share because the chance of winning money is higher. Only players with a high ROI should be selling shares at a high P/V.
If you are a new seller, we really recommend keeping your P/V value low otherwise people will not buy your shares.
Here are our ChipMeUp P/V tips:
- The lower your P/V value is, the more shares you will sell
- Don't sell shares with a P/V greater than 150% or 110% if you are new.
- Feel free to raise your P/V once you have proven successful results.
- If you are getting staked for a tournament where the buyin is higher than what you usually play, reduce your P/V. Your ROI may not apply if you are moving up to a bigger game.
- Would you rather sell some of your shares with a high P/V or all of your shares with a lower P/V? We think the latter, because at least your now fully staked to play that tournament - You gotta be in it to win it!
Calculating P/VUse our P/V calculator to see how it all works
|Price / Value|
Here is the basic formula we use to calculate P/V based on the 3 different values above.
P/V = (price per share * 10000) / (entry cost * single share size)
Last words on P/VHere is a link to a news article that was previously written about P/V and ROI.
You'll also find a lot more information about P/V and share pricing in the forum. Or if you're still puzzled by it all, why not strike up a conversation in the shoutbox or shoot us an email.
And next time you create a new event on ChipMeUp, consider dropping the P/V a little - We love seeing more buyers and more winners!!